'Report Innaccurate In Not Noting 'Clean' Audits'

It is very disappointing that in your online story on June 15, Credit Union Journal ignored a basic fact that would have been of interest to all federally insured credit unions and members: The National Credit Union Share Insurance Fund (NCUSIF) received unqualified audit opinions ("clean" audits) for both 2008 and 2009. Your website's omission of that central financial finding marred your coverage of a very important news story.

Two independent audit firms unequivocally reported that NCUA's financial statements "present fairly, in all material respects," the condition of the NCUSIF. For federally insured credit unions and their 90.2 million members, the Share Insurance Fund's clean audits are certainly newsworthy. In fact, an unqualified opinion is the most important aspect of any financial audit. Yet Credit Union Journal failed to even mention it.

A more balanced story would have also noted that a change of auditors is routine. NCUA, like most government agencies, rotates audit firms periodically. Because Deloitte & Touche's contract with NCUA was scheduled to conclude after the 2008 audit, KPMG was contracted to conduct the audit for 2009. Credit Union Journal's claim that replacing the 2008 auditor "made the dual audits even more difficult" gave the impression that NCUA had done something irregular. Nothing could be farther from the truth. A regular audit rotation provides an essential fresh perspective on financial reviews, adding an extra measure of accuracy and impartiality.

The audit process is, by definition, complex. At no time did NCUA consider sacrificing its integrity and independence for expedience. I remain firmly committed to ensuring that NCUA will continue to produce accurate, transparent, and thorough audit reports, and continue to fulfill our public purpose to provide essential information to government and industry stakeholders.